WHAT MAKES ECO4 DIFFERENT FROM ECO3?

The Exemplary Evolution

The transition from ECO3 to ECO4 represents a significant evolution in the Energy Company Obligation (ECO) scheme. While retaining some similarities with its predecessor, ECO4 introduces crucial differences aimed at reaching more vulnerable households and addressing fuel poverty in specific regions.

Enhanced Focus on Vulnerable Households

One of the central objectives of ECO4 is to target vulnerable households more effectively. It specifically focuses on households receiving benefits or falling within the low-income bracket. By doing so, ECO4 aims to ensure that all homes have access to affordable energy, reducing the burden of high energy bills on those who need it most.

Changes in Eligibility Criteria

A notable difference between ECO3 and ECO4 lies in the eligibility criteria. While ECO3 allowed certain benefits to be eligible, ECO4 narrows down the qualifications, aiming to better target households with lower incomes. This shift ensures that support reaches those who are most in need.

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Reduced Boiler Support

Under ECO3, a substantial number of boilers were upgraded, benefiting numerous households. However, ECO4 takes a different approach, limiting boiler support to just 5,000 homes. This reduction reflects the scheme's altered focus on other energy-saving measures.

Shift Towards Insulation and Heat Pumps

Insulation measures and green heating systems, such as air-source heat pumps, are key components of ECO4. These measures offer significant energy savings and reduced bills for households. While biomass boilers are still supported, they are considered only if a heat pump is not a viable option.

Impact on Obligated Suppliers

The transition to ECO4 has implications for obligated suppliers—energy companies with 150,000 or more customers. The number of such suppliers has increased over time, and ECO4 continues to place obligations on them to promote energy-saving home improvements.

The Transition from ECO3 to ECO4

ECO3 officially closed to new applications on March 31, 2022, making way for ECO4, which commenced in August 2022. ECO4 is expected to run until March 31, 2026, unless energy companies fulfil their obligations sooner. The scheme benefits from a substantial £4 billion in funding to support its initiatives.

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ECO Grant Expert is your dedicated partner in navigating the complexities of ECO4. Our team of experts is committed to assisting you in accessing the grants and energy-saving solutions you need.

In summary, ECO4 represents a strategic shift in the Energy Company Obligation scheme, with an increased emphasis on reaching vulnerable households, adjusting eligibility criteria, reducing boiler support, and prioritising insulation and heat pumps. These changes are designed to enhance the scheme's effectiveness in providing affordable and energy-efficient solutions to those who need them the most.